Meta Platforms (META) has seen a significant drop from its peak, entering a bear market and barely breaking even for the year as it fell below $600. The stock dipped below $700 after the Q3 earnings release, with concerns over increased capex and expenses overshadowing strong performance. Analysts predict Meta’s 2025 capex to be around 36% of its revenue.

Michael Burry has raised concerns about AI stocks being in a bubble, accusing Big Tech of accounting fraud. Burry estimates that hyperscalers like Oracle and Meta Platforms will understate depreciation by billions, affecting their earnings. Despite this, Wedbush analyst Dan Ives maintains a $920 target price on Meta, considering it a good investment.

Meta’s strong focus on AI has driven growth, with Q3 revenue hitting a new high. The company’s core digital ad business is thriving, with AI enhancing growth. Meta is also exploring hardware opportunities, particularly in smart glasses, positioning itself for future growth. Despite concerns over AI capex, Meta’s forward P/E ratio indicates it’s a solid investment.

Regulatory issues remain a challenge for Meta, with the company recently winning an FTC antitrust lawsuit. The legal victory, focused on Instagram and WhatsApp acquisitions, removes a significant uncertainty for Meta’s future. Despite potential bombshells from Burry, Meta’s risk-reward balance appears favorable at current price levels, prompting some investors to increase their positions.

Read more at Yahoo Finance: Is Meta Stock a Buy or a Sell Before Michael Burry Drops His Bombshell on November 25?